> Owning scarce items gives them status.

NFTs are not scarce. A painting is scarce because you can never replicate the original painter physically impressing whatever they see in their mind on a blank virgin canvas. If the original painter happens to be on the right side of the Power law and becomes famous, then the painting value also skyrockets because said canvas was touched by them (e.g. Leonardo da Vinci)

Stuff on the internet cannot be scarce, you'd need the metaverse with its own rules to create scarcity. E.g. "Ferraris" and "Lamborghini" cars in GTA V. Their rarity is enforced but as soon as the internet gets hold of it then the scarcity is immediately eliminated on the PC version with mods